Since the middle of Wednesday's trading, the USD/JPY has continued to trade sideways around the 110.00 level.
However, up to the start of Friday's trading, the rate was finding support in the 200-hour simple moving average. On Friday, the rate shortly traded below the SMA indicating that it might not continue to provide support.
Economic Calendar
The top day for fundamental event watchers will be Friday. On Friday, at 12:30 GMT the US will release the country's monthly employment data. Later on, at 14:00 GMT, the US ISM Services Purchasing Managers Index is set to be out.
Most impact is expected from the US employment data release. The release will consist of the US Average Hourly Earnings, Non-Farm Employment Change and the Unemployment Rate.
USD/JPY short-term review
In the case the USD/JPY currency exchange rate surges, it would first face the resistance of the 55-hour simple moving average at 110.05 and the 110.10 level. Above these levels, the rate could aim at the 110.40 level, which stopped the September 1 surge.However, a decline of the rate would look for support in the 200-hour simple moving average and the weekly simple pivot point at 109.86. If these levels fail to provide support, the USD/JPY might reach for the August 31 low level at 109.60.
Hourly Chart
USD/JPY daily chart's review
On the daily candle chart, the pair has broken the resistance of the channel down pattern, which has guided the rate down since the start of July. Moreover, the pair pierced the resistance of the 55-day simple moving average, which has been providing resistance to the pair since August 18.A potential target for the rate on the daily candle chart is the July and August high level zone that starts at 110.60.
Daily chart
On Friday, traders on the Swiss Foreign Exchange were 65% short on USD/JPY.
On Thursday, the sentiment was 68% short.
Meanwhile, trader set up pending orders in the 100-pip range around the rate were 58% to sell.